Here is an issue not regularly commented and I would say less in the academic environment, basically because students, for instance, do not have to bear with this since a professional life is just beginning. But another reason could be the decreasing presence of unions in Western Europe and Latin America explained in the different sources used for this article. The idea of this text is to explore the current situation of trade unions and their challenges since European integration, then, expose an interesting research about the role of trade unions in Colombia in terms of wages distribution.
“Trade union membership has fallen in Europe over the last 30 years” (ETUC, 2008). This drop is explained due to the decline in the sectors where unionism was more popular, these are heavy industries like mining and steel making. But cultural reasons are present too; young people, migrants and private sector employees are less inclined to join a union.
An event that affected critically unionism in many eastern European states was the fall of the Iron Curtain in 1989, when that movement collapsed at an even more dramatic rate. In Poland, 14% level of unionization is in contrast to that of the Soviet-controlled era, when almost all workplaces were unionized. Most of those who remain trade union members in Poland work for former state-owned companies. In just 8 out of the 27 member states of the European Union employed population members of a trade union are more than half. In fact, the EU's four most populated states all have low levels of unionization, with Italy at 30%, the UK 29%, Germany 27% and France at 9% (FedEE, 2010). As a consequence, three out of every four people employed in the EU are not members of a trade union and FedEE estimates that, in the medium term, the average level of unionization across the EU will drop even further - from 26.3% today to fewer than 20% by 2010 ((FedEE, 2010).
Despite this situation many organizations exist and achieved an international level to continue working for improvement of work conditions. The process of integration in the region has changed the setting in which these organizations operate since activities and policies across Europe must be coordinated to defend and bargain for members at a national level. They have to speak with a single voice and collectively at European level to influence the economy and society at large and this challenge is taken up by the European Trade Union Confederation whose objective is “an EU with a strong social dimension that safeguards the wellbeing of all its citizens” (ETUC, 2008). ETUC has 82 National Trade Union Confederations in membership from 36 European countries, as well as 12 European industry federations, making a total of 60 million members, plus observer organizations in Macedonia, Serbia, and Bosnia and Herzegovina. The organization is one of the European social partners and is recognized by the European Union, by the Council of Europe and by EFTA as the only representative cross-sectional trade union organization at European level.
Trade unions have as their main objective improving working conditions for most needed workers through processes of negotiations and bargaining but, are this objective always achieved over the world just because of the presence of unionism?
Laura Cuesta (2005) studied the impact of trade unions in Colombia questioning if there is a wage differential between unionized and non-unionized employees attributable to the unions, what is the magnitude of the differential and which part of the inequality in wages of employees is explained by the unions. This is a quite interesting approach and during this research is explained how in United States the wage differential for workers with lower pay is 30% and for workers with higher earnings is 10%, indicating a positive effect of unions on the distribution of wages. In Colombia also existed a slowdown in the unionization rate in recent decades and it was found that unions account for 4% of labor income inequality between unionized and non-unionized workers. Although the percentage is not very high, it is higher than other variables that have traditionally been associated with wage dispersion, such as gender and household dependency rate. From this research was concluded that in Colombia, as in other Latin American countries, North America and Europe, workers with same characteristics face wage differentials favoring unionized employees but that are professionals who receive higher wages and this means that in Colombia, unlike the findings for other regions, trade unions contribute to worsening income distribution. The explanation of this thesis is that the highest rate of unionization in Colombia is seen among professional workers and, paradoxically, the lowest among workers presents operators. This means that, against the evidence from other countries, unions in Colombia increased wage dispersion among employees, because those who benefit from collective agreements already have a differential in favor, by the fact of being qualified.
This conclusions show the difference in social organization of Europe and Colombia that implies different roles and contexts for labor unions in each region. Here it would be interesting to do further study in cultural factors that determined, for instance, the paradox in the social organization of Colombian trade unions.
References
European Trade Union Confederation. (2008). European trade unionism. Retrieved from: http://www.etuc.org/r/1138
Federetion of European Employers. (2010). Trade unions across Europe. Retrieved from: http://www.fedee.com/tradeunions.html
Cuesta, L. (2005). Impact of unions in Colombia: Higher wages and more inequality? Desarrollo y Sociedad. Retrieved from: http://economia.uniandes.edu.co/investigaciones_y_publicaciones/CEDE/Publicaciones/Revista_Desarrollo_y_Sociedad/Ediciones/revista_desarrollo_y_sociedad_no_56/impacto_de_los_sindicatos_en_colombia_mayores_salarios_y_mas_desigualdad